Zaid Admani

The company now plans to produce about 4 million units this quarter, down from the 6 million it originally expected.

Now, here's the thing.

The Switch 2 had an incredible launch.

When it came out back in June of last year, it sold over 17 million units in its first year, making it the most successful hardware debut in Nintendo's history.

But that momentum didn't carry into the holiday season, especially in the U.S.,

Now, a part of the problem is the price tag.

The Switch 2 is pretty expensive at $450.

But also, there hasn't been any must-own games.

Like, for example, Metroid Prime 4, which came out in December, was a disappointment, selling less than a million copies in its launch month.

So investors have taken notice.

Nintendo's stock has lost about 28% of its value since the Switch 2 came out back in June.

And the stock lost another 6% in Tokyo after reports of the production cutbacks.

So the hype might be gone, but I should bring up a Nintendo stock did see a bounce back a couple of weeks ago after the launch of Pokemon Pocopia, which sold 2 million copies in just four days.

So that game is a massive hit.

It might help boost Nintendo sales a little bit, but obviously Nintendo's management doesn't think it's going to be a long-term solution.

And so the biggest takeaway for me is that Pokemon is still just insanely popular these days.

Let's talk about some stocks making moves today.

Let's start with the investment bank, Jefferies.

Shares of the company are popping this morning after reports that Japan's Sumitomo Mitsui Financial Group is exploring a possible takeover.

SMFG is Japan's second largest lender, and they've been slowly building a position in Jefferies for years.